EU’s Cross Border Renewable Energy Tender

• EC has invited proposals for the 1^st cross-border tender for renewable energy under RENEWFM
• It has invited bids for 400 MW solar PV capacity to be set up in Finland as the hosting nation and Luxembourg pitching in with €40 million
• Projects can be installed within the range of 5 MW and 100 MW and not exceed the cap of €180/MW

The European Commission (EC) has opened the first round for the European Union (EU) cross-border tender, seeking bidders to establish new solar PV projects with a combined 400 MW capacity in Finland with prices capped at €180/MW.

Launched under the European Renewable Energy Financing Mechanism (RENEWFM), the tender will support projects with a minimum installed capacity of 5 MW and maximum 100 MW. These can come up anywhere in Finland except for the Åland Province.

Eligible applications will be ranked according to the lowest price offer/MW. In case of equal price, projects will be ranked first if these are located in the following areas:

• the regions of: Kainuu, South Karelia, North Karelia, South Savo, North Savo and Kymenlaakso;
• the municipalities in the region of Lapland: Savukoski, Pelkosenniemi, Salla, Kemijärvi and Posio;
• the municipalities in the region of North Ostrobothnia: Pudasjärvi, Taivalkoski and Kuusamo.

Once the grant award is signed, selected projects need to start commercial operations within 24 months and remain in operation for a minimum of 15 years during which time a project must generate at least 850 full load hours/year.

Removal of forest at project level is restricted to a maximum of 25% of the area needed to solar panel installations.

The cross-border process is being implemented by the European Climate Infrastructure and Environment Executive Agency (CINEA). It will evaluate competing offers and award grants to selected projects basis lowest bid price till the budget is exhausted. 

Launched on April 18, 2023, proposals in response to this tender need to be sent in till September 27, 2023. Details are available on the EC website.

For the inaugural tender while Finland is the hosting country, Luxembourg will participate as a contributing country, voluntarily contributing €40 million to the RENEWFM.

This financing program enables EU countries to work closely to promote renewables, pooling resources and finding the right mix between public and private finance. It facilitates a cost-effective roll-out of renewables across the bloc, particularly in areas with greater access to natural resources or are better suited for it in terms of geography and meet the objectives of the European Green Deal and REPowerEU.

"The commission is optimistic that the publication of this first tender will stimulate interest in other EU countries, and will highlight the benefits of such cooperation," stated the commission that plans to launch a 2^nd tender under the mechanism by the end of 2023.